Housing Expenses Not a Major Concern in Retirement

If given an extra $300,000 in
retirement, 20% of Americans would use it to pay off a mortgage and 15%
would buy a dream home, according to a Voya Financial survey.

Nearly
one-quarter (23%) would save the money for future health-care needs,
and 17% would pay off non-mortgage debt. Only 13% of consumers would use
the cash for travel, while 4% would buy toys such as a new car or boat.

The survey found that Americans are the most concerned about
the cost of health care in retirement. Forty-one percent cited it as
their biggest retirement worry, compared with 15% who are plagued by
housing expenses. Many of those who are not yet retired (85%) said they
plan to own a home in retirement, while only 12% expect to rent.

Most
homeowners (80%) said they are optimistic about paying off their loan
before retirement, but 26% of current retirees said they still have an
outstanding mortgage balance.

More than half (57%) of
respondents said they plan to spend about the same on housing in
retirement as they do now. Among those who plan to adjust their housing
budget, more than twice as many respondents (27%) plan to downsize to a
cost-effective home versus buy their dream home (12%).

NEXT: Deciding where to live

When it comes to relocating
in retirement, the results were split. Half of respondents plan to move
in retirement, while 49% said they are happy with where they live.

Thirty-eight percent of respondents to the survey said the proximity to loved ones is
the most important factor in deciding where to live in retirement, while
12% cited cost of living. Although many are concerned about health care
in retirement, only 6% said that access to good or affordable health
care was a priority for where to live.

“Retirement
goals are personal, and each individual or couple is on their own
journey. The one constant, however, is to make sure you map out a plan
to reach your destination,” says Rich Linton, president of Large
Corporate and Retail Wealth Management Markets at Voya Financial.

Voya
is currently offering an Orange House Sweepstakes as a reminder for
individuals to think holistically about retirement and identify short-
and long-term goals, Linton says. One winner will be granted $300,000
with the hope that he or she applies the money toward a house in
retirement. The deadline is April 24, and more details are at
voya.com/OrangeHouse.